Humbled Trader shares Investing Tips for Beginners (120% Return on One Stock!)

About this Video

• Video Title: Humbled Trader shares Investing Tips for Beginners (120% Return on One Stock!)
• Channel: Joyee Yang
• Speakers: Joyee Yang, Shay Huang (Humble Trader)
• Duration: 00:17:42

Introduction

This video features an interview with Shay Huang, the "Humble Trader," a successful day trader and long-term investor. Joyee Yang interviews Shay about her investment strategies, balancing short-term trading with long-term investments, risk management, and advice for beginner investors.

Key Takeaways

• Balancing Short-Term and Long-Term Investing: Shay separates her trading (business income) and investing (capital gains) into different brokerage accounts for tax purposes. She checks her long-term investment portfolio infrequently (monthly or even every six months), while actively monitoring her short-term trading accounts daily.
• Long-Term Investment Strategy: Shay invests heavily in S&P 500 ETFs (like VFV and VOO), dividend ETFs, and individual blue-chip stocks in tech (Apple, Amazon, Microsoft, TSM, Tesla). She emphasizes the importance of researching companies before investing and exiting if fundamentals change.
• Day Trading/Swing Trading Strategy: Shay focuses on volatile stocks for short-term trades, including Nvidia, Tesla, and recently, Circle (a hot IPO). She goes long or short depending on market movements.
• Risk Management: Shay advocates starting small when learning to day trade (e.g., with $2000) and advises against trading with money needed for living expenses or long-term investments. She emphasizes thorough research before investing and exiting if a company's fundamentals change negatively.
• Diversification: While acknowledging the concept of "over-diversification," Shay feels her portfolio is sufficiently diversified through S&P 500 ETFs and a selection of approximately 20 individual stocks.